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Jan 21

Referrals: The Bread and Butter of Your Business & Tips on How To Ask For Them

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By BAS & MORE financial geniuses 

Let’s face it: You need new clients to boost your business efficiency. But where can you find them? While investing in advertising and cold calling might sound ambitious, these are expensive exercises that don’t always result in client conversion.

 

The alternative? Getting referrals!
Generated by existing clients who are happy with your services, referrals are likely to bring you new business in no time. After all, what can be better than following a trustworthy advice?

The scheme is simple: Your clients genuinely think that your company offers excellent service. They want to share this knowledge with others. As a result, you can grow your business even further.

It seems so easy and exciting! No marketing and advertising expenses, no hassles, no worries, no kidding…

Well, sort of. In the ideal world, it might be the case but in reality, your clients are just as busy as you are and don’t have much time to think about your business goals.

It doesn’t mean that they don’t want to help but you need to ask them for assistance and set clear guidelines, ultimately planting a seed in their mind about referring the right clients to you. The ones that tick your boxes – be it the correct business size, industry, location or operation practises; the ones that pay on time and aren’t a pain to deal with.

 

Describe To Your Existing Clients Why You Need Referrals

You probably think to yourself, “What, should I just tell my customers that I desperately need more business? Won’t it put me in a vulnerable position?”

No, it won’t. In business, honesty is an asset, not a weakness. However, it also depends on how you ask for referrals, of course. Here is an example:

 

Start with an email or a letter to your existing top-list clients and specify that you:

  • Analysed your business patterns and realised that generating referrals is the most effective way of growing your business;
  • Show that you value their opinion and rely on their assistance to help you bring in more clients just like them;
  • Want to continue serving them well into the future and, therefore, need to ensure long-term sustainability.
  • Don’t set unrealistic expectations and ask for two referrals this month. End your letter with a sentence that you will give them a call to discuss it further and don’t forget to follow up in a few days.

And besides, there are many referral strategies to try, from sending free movie tickets to introducing referral and non-referral prices to new clients… Research what works best for your business, try it and stay positive!

Bonus: think outside the box. You can find new clients virtually anywhere. Approach your friends, former clients, past colleagues, hairdressers (they know all the secrets!), gym buddies…

Remember, a personal approach is always best as people relate to people.

To support your business growth BAS&MORE is offering 1 FREE month bookkeeping & virtual CFO services valued at $1,500.

Claim this offer now or call BAS & MORE on 1300 227 777 and we’ll put on our thinking caps to help your business fly! 

Jan 21

How To Juggle Your Business Priorities Without Breaking Your Neck

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By BAS & MORE’s Financial Wizards

Have you heard this famous saying, “Follow your dreams or spend the rest of your life working for someone who did”? Ouch. Sounds like a pretty harsh statement, doesn’t it? But saying is one thing while chasing your ongoing business success entails much more than that.

As a business owner, you know that it’s not enough to be good (and we mean, damn good) at what you do.

You also have to be a great communicator, negotiator, manager and sales rep, a marketer and an advertiser, as well as a role model to your team, a good service solution for your clients, and a human who still has to attend to family and personal needs after work (If you believe in life after work)…

Yes, all those hats need to be worn simultaneously.

Don’t get us wrong: We LOVE business owners and get inspired by each and every one of you for daring to make your dreams a reality. And we believe that your initial business success is very much important.

However, if you want to set your business on track for ongoing victories and find the life-work balance, you have to introduce scalable systems and practices to accelerate growth.

 

What are these practices?

  • Analyse your business operations. Figure out what you do best and how you do it. Document every step of the way. Take note of processes that need improvement or may be skipped altogether. This analysis will help you to create consistency, enhance business efficiency and save time.
  • Manage your risks. Make sure to minimise unnecessary risks such as dealing with a sole supplier or relying on one person to be responsible for a certain task. There are no guarantees that this person will be there tomorrow as people get sick, unexpectedly quit their jobs and move to Hawaii for the rest of their lives (just saying.) It’s better to have several people trained to perform the same task or have multiple suppliers of identical products to manage your risks.
  • Put together a useful business plan. Have you noticed the word ‘useful’? It’s there for a reason! Many entrepreneurs spend sleepless nights in front of their computers trying to squeeze out their business plans… But remember, you are not at uni struggling to complete a boring assignment. Your business plan is your working document you’ll use to understand your strengths, weaknesses, opportunities and threats and to set short and long-term goals and priorities. For instance, it will help you to develop a realistic budget, but we’ll speak about the magic word ‘budget’ at another time.
  • Consult with your trusted bookkeeper as often as you need. Even though a talented business person has a full skillset, it’s hard to be equally good at everything. Make the time to see your trusted bookkeeper on a regular basis to help you increase your revenue and plan the next steps in realising your business potential.

To support your business growth BAS & MORE is offering 1 FREE month bookkeeping & virtual CFO services valued at $1,500. 

Claim this offer now or call BAS & MORE on 1300 227 777 and we’ll put on our thinking caps to help your business fly! 

Jan 21

4 Proven Strategies to Make This Financial Year More Profitable and Productive (Plus 1 to Avoid at All Costs!)

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By Avi Bendetsky, CEO BAS & MORE Bookkeeping & Virtual CFO 

Can you imagine driving a car with broken gauges? What about trying to land a plane just by looking out of the windscreen? If your reply, ‘It’s too dangerous and puts my life and the lives of my loved ones at risk’, you are 100% right!

Well, guess what. You’ll probably be shocked to find out that despite working really hard, most SMEs don’t have a clean data or solid accounting and business growth systems in place, just hoping that things will somehow turn out fine.

As a result of poor financial data, these businesses decrease efficiency, systematically lose revenue, don’t make educated decisions and put their business at risk.

Analysing numbers is a critical aspect of growth no matter how big or small your business is. If you don’t know where you’re heading, how can you take your business to the next stage?

Thankfully, July is a great time for new beginnings and improvements, with the end of the financial year madness behind us.

Follow these 4 proven strategies (plus 1 to avoid at all costs) to improve your bottom line and make this year more profitable and productive:

1. Analyse Your Gross Profit Rates

Measuring your gross profit rates helps to identify how profitable is your business. One of my clients, who was doing quite well, recently asked me to analyse his product sales turnover, which almost doubled. The problem was that even though he was making more sales, there was no money in the bank!

By measuring the gross profit rate and splitting the products before and after the sale, I found a price discrepancy caused by a typo in the price. This explained why the increase in sales resulted in dropped profitability!

2. Forget Fortune-Telling and Guide your Business with a Reliable Budget 

Having a budget is one of the most efficient ways to save you a million headaches and wasted funds, giving you peace of mind about your future.

If you want to guide your business without wondering where to get the money from, you need an accurate budget.

It will help you:

 

• Gain financial control, smooth cash flow, clear projections on cyclical expenses, revenue and growth.

• Analyse your current business trends and significantly reduce risks and frustrations.

• Impact your viability to access growing capital from banks and investors allowing vested parties to have a clear vision of your company’s development.

• Make educated decisions and plans resulting in stable business growth.

If you need help with setting up your budget, download my free practical guide to streamlining cash flow and budgets and increasing profits without going nuts, 7 Steps to Overcoming Your Business Anxiety.

3. Compare Your Cash Flow Against Your Budget

While having a budget is great, it becomes useless unless you make adjustments based on your business trends.

In most accounting systems such Xero or MYOB, you can input your budget and run Budget vs. Actual Report to determine if your actual performance matches your projections. Do it monthly and adjust projections if necessary.

4. Introduce Staff Key Performance Indicators (KPIs)

Hopefully, your employees are delivering amazing results already. But what if it’s not exactly the situation?

What is the best way to measure your staff performance and help them achieve better results and develop professionally?

The answer is — Implementing staff KPIs.

KPIs are about building on strengths, improving areas that need upskilling and setting up measurable goals.

Every one of us wants to become more efficient and professional in our roles, and your staff are no exception. However, if your employee does not feel confident about a certain task, what are the chances you’ll be the first to know?

Having KPIs in place allows you to address strengths and weaknesses of each employee, which results in improved performance and productivity.

 

5. Inaction – A Strategy to Avoid at All Costs

If you are not actively investing in your business growth and optimising workflow systems on a regular basis, you are going backwards.

It comes to a realisation that stagnation and self-sabotage is a major killer of any business. 

Unsure where to start to change the situation and make your business more profitable? Get professional advice from BAS & MORE Bookkeeping & Virtual CFO. After all, it’s impossible to be great at everything, and that’s why we are here to help.

So, if you believe in steady business growth but need a hand, call us on 1300 227 770 or email info@basnmore.com.au today. Talk Soon.

Jan 21

What is the Survival Rate of Your Business?

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By Avi Bendetsky, BAS & MORE’s Principal Director

Several weeks ago I was excited to present as a guest speaker at the RSPA Seminar for Business Owners in Melbourne.

I just got a video recording of my presentation, Talking Numbers – The Language of Your Business, which I believe is going to help you a lot.

In this video, I go over common business risks and ways to increase your profit by ‘dissecting’ your income and expenses and analysing what your business is telling you through numbers.

Want to grow your business faster by plugging financial leaks and optimising systems? Give us a call on 1300 227 770 or email info@basnmore.com.au and we’ll help you achieve just that.

And don’t forget, our FREE Cash Flow Audit Offer is still on until 30 July! Check it out at here.

Jan 21

The Biggest Business Growth Hack I Learnt From My Bookkeeper

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By David Grunseit, Director of NorvaNivel Furniture

This may sound strange, but I rarely see my bookkeeper Avi. He works from his Melbourne office at BAS & MORE, while I live in Sydney operating my business throughout the world.

These days, thanks to modern technology, Avi doesn’t need to be at my place. I buy the hours I need. If my business expands, I can always buy more time.

A Deloitte 2016 Global Outsourcing Survey estimates that over 50% of businesses in Australia, North America and Europe outsource services to cut costs, focus on core business, improve productivity and solve capacity issues.

In the States alone, outsourcing bookkeeping has grown to over $300 million, while Australia is hot on its heels.

Why Outsource Bookkeeping?

There are so many reasons why you should take advantage of outsourcing your bookkeeping. Here are just a few:

 

1. Cut Overhead Costs by 40-60% and Focus on Core Business

Time is money and also it is the biggest asset of our lives. By outsourcing bookkeeping to a professional, you save time of juggling this job along with other responsibilities. You can free yourself to grow your business and set priorities for other employees, which is HUGE.

So too, instead of paying wages and sick and holiday leave allowances to in-house staff, you only get to spend a reasonable hourly rate or a fixed monthly price. This alone cuts overhead expenses by 40-60%.

 

2. Access Intellectual Capital and Hire a Bookkeeper Who Can Solve Your Headaches and Manage Your Risks

Avi often saves me more than I pay him because he makes sure I take full advantage of Australian business incentives while avoiding the ATO penalties for failure to comply with regulations I might not even know about! And that’s gold.

Plus, Avi runs a team of local qualified bookkeepers, so you get the support of a whole accounts department as needed throughout the week, even if your weekly package does not exceed 6 hours!

Compare that to the risk of hiring an employee, who might lose interest over time, leave your company, join the competition and take along your intellectual property!

 

3. Reduce White Collar Crime

A 2016 study by the Association of Certified Fraud Examiner indicated fraud is most likely to occur in small, private businesses with under a hundred employees. The average cost of white collar crime to a business is almost $150,000.

Crime is made easier by the fact that these companies don’t have a financial officer or a controller. Those with trained outsourced bookkeepers can alleviate the risks of white collar crimes.

 

4. Save Space and Capacity

Whether space is already tight at your present location or you’re planning to expand at this site or set up other locations, outsourcing bookkeeping means you don’t have to designate space for it.

Moreover, whether I have one or a dozen locations anywhere in Australia or around the world, my bookkeeper can seamlessly continue to take care of my company needs, compile the books and keep me in the loop no matter where I am on planet Earth.

As Jennifer Williams notes in her recent article, outsourcing is the biggest growth hack of 2017. And I can’t agree more.

Jan 21

Are Business Growth Risks an Oxymoron? And 5 Mistakes You Can’t Afford to Make

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By Avi Bendetsky, Managing Director BAS & MORE Bookkeeping and Virtual CFO

Every business owner dreams to grow their business. You dream about it. I do, too. Otherwise, we wouldn’t be here.

However, dangers are lurking in such hopes. So… should you just forget about expanding? Never! But avoiding the common mistakes of rapid growth can save and scale your business time and again.

RISK 1: Not Watching Your Cash Flow

As your business expands, it’s easy for expenses to exceed revenue. If you then have a quiet time or a bad economic period it can do your business in.

Avoid bandwagons like “managing by objectives” or “team-based decision-making”. There’s nothing wrong with the basic premises of many “new business operations” but unfortunately, in our zeal for bigger and better, we tend to throw out what’s tried and true.

RISK 2: Not Maintaining High Standards of Leadership During the Time of Change

When you get committed to expanding your business, sometimes, important things like employee satisfaction, team building, and customer relations get neglected.

As your business grows, you can expect more revenue, and it’s tempting to go on a “spending spree.” Growth may require building capacity or hiring new staff or purchasing new equipment.

But proceed with caution and keep in mind that your customers and your employees don’t always adapt to change as quickly as you’d like. Be sensitive to their anxiety. Be reassuring that your business still values them.

Expansion may involve outsourcing and handing over some of the day-to-day operations to someone else. However, it’s essential to keep your finger on the pulse of your company.

Keep a keen eye on things your leadership role may need when you are expanding. As your company grows so, too, you need to be sensitive to lapses in your leadership skills.

Rome wasn’t built in a day. Anything worth doing should be done gradually and with a carefully crafted plan.

RISK 3: Not Keeping Track of Business Trends and Forgetting to Delegate

As a small business owner, it’s easier to be an all-rounder, but as the company grows, can you handle it on your own?

Remember, it’s not your job to make all the decisions 24/7. Take time to understand how your role may change as the company expands. As a CEO, you have to spend your time effectively, know how to plan, communicate clearly where the business is going, motivate and delegate.

For instance, ask yourself whether you have a solid plan for collecting accounts receivable. If you’re billing and not collecting quickly, it’s easy to find your business in a state of needing a debt collector.

That’s why, it’s vital to have a trusted bookkeeper to analyse your figures and ratios while you can focus on further development, client retention or upskilling staff.

Another pitfall is thinking that success is measured in increased sales. More sales don’t always mean higher profits; what matters more is how much money is left in your bank account at the end of the day.

So too, don’t rush to hire new staff. Introducing Key Performance Indicators, known as the KPIs, might help to upskill your existing staff and increase their productivity while saving your overheads by one more salary at least.

RISK 4: Not Staying on Top of Your Clients’ Mind

Bigger does not necessarily mean better or even more profitable. Don’t let the quality of your customer relations slump because of attention to rapid expansion. Even if you are out there winning over new clients, it is vital to keep your present, loyal customers happy.

As a leader, you need to do what Steve Jobs called “thinking differently”. Stay on top of mind of your existing clients, identify new customer niches and develop products winning against the competition.

You may have gotten into growing your business in an economic boom or upturn for your company, but you need to be prepared for a business downturn, too. We all know what happened to fibre optics companies and dot.com enterprises.

RISK 5: Putting Your Company on Cruise Control

Finally, when things seem to be progressing swimmingly, don’t rest on your laurels and put the company on cruise control. There is a tendency in businesses and organisations to take a breather, sit back, enjoy the success, and pat yourself on the back. Meanwhile, your competitors might develop a solution that will overtake the market.

There is always a need to consider what you should be doing to take your company to the next level. As a business owner, you need to have a growth mindset.

Yes, I know, I said: “Don’t get in a rush to grow.” However, this doesn’t mean that you shouldn’t challenge yourself and your employees to keep your enterprise fresh and responsive to your niche market. Anticipate the growing needs and interests of your clients.

A company that sits back smugly will be overtaken by one that is attuned to the changing wants and needs. It’s just a matter of time.

So, if you want to see your business reach new heights, be courageous to grow with it. Research the market, try new things, and invest in your team. With these tools, you can expand while avoiding the pitfalls that can cost you your business.

Forewarned is forearmed.

Read more about streamlining your business and avoiding business expansion risks in my e-book, Overcome Your Business Growth Anxiety in 7 Steps, here.

Jan 21

Gain Confidence in Your Business Direction Before the Holiday Season

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By Avi Bendetsky, Managing Director BAS & MORE Bookkeeping and Virtual CFO

With the bustle of the holidays, it’s easy to get distracted from business issues. Get loose ends tied up now before the holiday season kicks in and focus on family and social events with a much clearer picture of where your business is heading.

Getting your ducks in a row before the holiday season puts you ahead of the competition. You won’t be playing catch up with books, budget and strategic planning when the New Year begins.

With this clear vision comes an opportunity to share your business goals with employees, suppliers and clients.

Here are some things to consider:

1. Have Your Finances in Order

This is a year-end must. Conduct a financial review:

  • What bills do you have that remain unpaid?
  • Who owes you money?
  • Take stock. What suppliers do you need to contact so your company has the supplies it needs until January?

Remember: Some suppliers may have irregular hours during the holiday season. Don’t get caught unaware.

2. What’s Going On with Your Books?

Do you know your bottom line? Are there suspended transactions that remain unreconciled?

Now is also the time to estimate your budget/projections for the coming year. Consider your:

· Current financial status

· Proposed expansions or cutbacks

· Planned replacements

· Major changes in products or services you intend to introduce

If these tasks feel overwhelming, consult with your trusted bookkeeper or get one on board to offer comprehensive reports to make things easier for you.

3. Looking Back to Look Forward

Relook at your company’s mission statement, strategic goals, website and marketing. Use this time of the year to plan and make the necessary changes.

Another important area small businesses often overlook is getting rid of the clutter – physical and mental.

Tidy account books, receipts, physical and digital files. This will give you a clearer workspace and a more informed headspace.

4. Show Appreciation

Year-end and the holiday season is a great time to communicate with your customers and clients, suppliers and staff.

Show and tell them how important they are to your company and how much you appreciate their contributions and don’t forget to communicate proposed goals and new projects.

Having checked these items off your list, you’ll be less distracted, less stressed and more hopeful about the upcoming year.

Happy Holidays! 

Jan 21

Why Bookkeeping Helps Bring in Funds Into Your Business?

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By Avi Bendetsky, Principal Director BAS & MORE Bookkeeping and Virtual CFO

While bookkeeping is not a direct source of revenue, if done right, it can help eliminate many costly mistakes and save your business more than a bookkeeper’s salary. 

Proof? Here are just a few examples:

 

Making Sound Investment Decisions

It’s almost impossible to grow your business into a large company without external investments from various sources – be it angel investment, banks or partnerships. However, your eligibility for such investments is 100% driven by your company’s shape.

Your bookkeeper should advise you on the need and feasibility for specific changes in services, workflow or operations, possible expansions and the need to make cutbacks.

So too, a smart bookkeeper should identify areas where you are overspending and can find such issues as redundancies where payroll and supplier expenses are eating up potential profits.

Don’t forget about the benefits of financial reporting to analyse operations, cash flow trends, risks and projections.

 

Compliance and Regulations

The ATO, SRO and other government regulations are time-consuming to meet. A trustworthy bookkeeper will liaise with third parties on your behalf and can even negotiate payment plans to help avoid late BAS lodgment fees and other costly fines and penalties for non-compliance.

 

Grant and Loan Applications

When you apply for business loans or grants to facilitate growth, lenders and grant agencies expect an accurate overview of the company’s financial affairs.

If this information is not available or is poorly organised or incomplete, you can forget about getting that awesome grant or loan.

A good bookkeeper should present your company in a favourable light – by understanding your current state, potential for growth and business projections.

 

Saving Time for What You Do Best

How often do you find yourself drowning in the piles of paperwork? It takes you forever and results in unnecessary stress and frustration because — let’s face it — bookkeeping is not your forte.

And there is nothing wrong with it. We all have our strengths and weaknesses. You’d rather be growing your business, making sales or developing new products, as those are the things that make your business stand out and bring in cash. Sometimes, bringing even one new client on board covers your monthly bookkeeping fees.

 

Getting organised and avoiding costly mistakes

Efficiency is another thing a good bookkeeper brings into your business so you can get instant access to any information you need.

Importantly, analysing your figures helps to make money-saving and money-generating decisions, and helps avoid:

•    Data entry mistakes

•    Lost transactions in Accounts Receivable/Payable

•    Business expenses, mix-ups or abuses

•    Late fees caused by not paying your suppliers’ invoices promptly

 

Future Planning

When it comes to making plans about the future of your business, a good bookkeeper will provide expert advice on proposed expenses, expansions, replacements, reductions, and plans for generating the funds for making these changes a reality.

But to get there, you need to get the basics right first.

If you want to get your burning business questions answered, book a free phone consultation with BAS & MORE’s Principal Director, Avi Bendetsky Click here to choose a good time.